Press Release Details

Tutor Perini Reports Second Quarter 2018 Results

Diluted EPS of $0.49, with strong operating margins in the Civil
and Building segments

New awards of $1.3 billion, reflecting a book-to-burn ratio of 1.2

Backlog up 15% year-over-year to a new record high of $8.7 billion

Double-digit year-over-year backlog growth across all three segments

LOS ANGELES--(BUSINESS WIRE)--
Tutor Perini Corporation (NYSE: TPC), a leading civil, building and
specialty construction company, today reported results for the three
months ended June 30, 2018. Revenue for the second quarter of 2018 was
$1.1 billion compared to $1.2 billion for the second quarter of last
year. The decrease was driven by certain Building segment projects that
are now complete and the timing of project execution activities on
various Civil segment projects in New York and California. Income from
construction operations for the second quarter of 2018 was $54.8
million, up 61% compared to $34.0 million for the same quarter of last
year. The increase was due to favorable operating margin performance in
the Civil and Building segments and the absence of prior-year
unfavorable adjustments in the Specialty Contractors segment. Net income
attributable to the Company for the second quarter of 2018 was $24.9
million, or $0.49 per diluted share, compared to $30.1 million, or $0.59
per diluted share, for the same quarter of 2017. The results for the
prior-year period included a $37.0 million legal settlement that was
recorded in other income, which contributed $21.9 million of net income
and $0.43 of the reported $0.59 per diluted share.

Backlog as of June 30, 2018 was $8.7 billion, a new record high and up
15% compared to $7.6 billion as of June 30, 2017. New awards and
adjustments to contracts in process totaled $1.3 billion in the second
quarter of 2018. Significant new awards included the $410 million Purple
Line Extension Section 3 Tunnels project in California, the $172 million
Baruch Houses mechanical project in New York and the $93 million
Broadway Bridge Rehabilitation project in New York.

“Earnings for the second quarter exceeded our expectations largely due
to better-than-anticipated margins in our Civil and Building segments,”
commented Ronald Tutor, Chairman and Chief Executive Officer. “We also
achieved our fourth consecutive quarter of double-digit year-over-year
backlog growth, reflecting our continued success in bidding and winning
new projects. We believe that our results for the second half of 2018
will continue to improve due to expected increased activity on some of
our larger projects.”

Outlook and Guidance

Based on the Company’s results to date and its mid-year forecast, the
Company is narrowing its guidance for 2018, with diluted earnings per
share (EPS) now expected in the range of $1.90 to $2.05.

Second Quarter Conference Call

The Company will host a conference call at 2:00 PM Pacific Time on
Tuesday, August 7, 2018, to discuss the second quarter 2018 results. To
participate in the conference call, please dial 877-407-8293 five to ten
minutes prior to the scheduled time. International callers should dial
+1-201-689-8349.

The conference call will be webcast live over the Internet and can be
accessed by all interested parties on Tutor Perini's website at www.tutorperini.com.
To listen to the webcast, please visit the Company's website at least 15
minutes prior to the start of the call to register and to download and
install any necessary software. For those unable to participate during
the live call, the webcast will be available for replay shortly after
the call on the website.

About Tutor Perini Corporation

Tutor Perini Corporation is a leading civil, building and specialty
construction company offering diversified general contracting and
design-build services to private clients and public agencies throughout
the world. We have provided construction services since 1894 and have
established a strong reputation within our markets by executing large,
complex projects on time and within budget, while adhering to strict
quality control measures. We offer general contracting, pre-construction
planning and comprehensive project management services, including the
planning and scheduling of the manpower, equipment, materials and
subcontractors required for a project. We also offer self-performed
construction services including site work, concrete forming and
placement, steel erection, electrical, mechanical, plumbing and heating,
ventilation and air conditioning (HVAC). We are known for our major
complex building project commitments, as well as our capacity to perform
large and complex transportation and heavy civil construction for
government agencies and private clients throughout the world.

Forward-Looking Statements

The statements contained in this release, including those set forth
in the section “Outlook and Guidance,” that are not purely historical
are forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended, including without limitation,
statements regarding the Company’s expectations, hopes, beliefs,
intentions or strategies regarding the future and statements regarding
future guidance or estimates and non-historical performance. These
forward-looking statements are based on the Company’s current
expectations and beliefs concerning future developments and their
potential effects on the Company. While the Company’s expectations,
beliefs and projections are expressed in good faith and the Company
believes there is a reasonable basis for them, there can be no assurance
that future developments affecting the Company will be those that we
have anticipated. These forward-looking statements involve a number of
risks, uncertainties (some of which are beyond the control of the
Company) or other assumptions that may cause actual results or
performance to be materially different from those expressed or implied
by such forward-looking statements. These risks and uncertainties
include, but are not limited to, inaccurate estimates of contract risks,
revenue or costs, the timing of new awards or the pace of project
execution; the requirement to perform extra, or change order, work
resulting in disputes or claims, which may adversely affect our working
capital, profits and cash flows; unfavorable outcomes of existing or
future litigation or dispute resolution proceedings against project
owners, subcontractors or suppliers, as well as failure to promptly
recover significant working capital invested in projects subject to such
matters; a significant slowdown or decline in economic conditions;
increased competition and failure to secure new contracts; client
cancellations of, or reductions in scope under, contracts reported in
our backlog; actual results could differ from the assumptions and
estimates used to prepare financial statements; failure to meet
contractual schedule requirements, which could result in higher costs
and reduced profits or, in some cases, exposure to financial liability
for liquidated damages and/or damages to customers; failure of our joint
venture partners to perform their venture obligations, which could
impose additional financial and performance obligations on us, resulting
in reduced profits or losses; decreases in the level of government
spending for infrastructure and other public projects; inability to
retain key members of our management, to hire and retain personnel
required to complete projects or implement succession plans for key
officers; failure to meet our obligations under our debt agreements;
possible systems and information technology interruptions; failure to
comply with laws and regulations related to government contracts;
inclement weather; conversion of our outstanding Convertible Notes that
could dilute ownership interests of existing stockholders and could
adversely affect the market price of our common stock; the potential
dilutive impact of our Convertible Notes in our diluted earnings per
share calculation; economic, political and other risks, including civil
unrest, security issues, labor conditions, corruption and other
unforeseeable events in countries where we do business, resulting in
unanticipated losses; impairment of our goodwill or other
indefinite-lived intangible assets; and other risks and uncertainties
discussed under the heading “Risk Factors” in our Annual Report on Form
10-K for the year ended December 31, 2017 filed on February 27, 2018 and
in other reports that we file with the Securities and Exchange
Commission from time to time. The Company undertakes no obligation to
publicly update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, except as may be
required under applicable securities laws.

Tutor Perini Corporation

Condensed Consolidated Statements of Income

Unaudited

Three Months Ended June 30,

Six Months Ended June 30,

(in thousands, except per common share amounts)

2018

2017

2018

2017

REVENUE

$

1,120,085

$

1,247,274

$

2,148,241

$

2,364,635

COST OF OPERATIONS

(1,001,445

)

(1,144,436

)

(1,962,533

)

(2,159,078

)

GROSS PROFIT

118,640

102,838

185,708

205,557

General and administrative expenses

(63,825

)

(68,793

)

(131,818

)

(134,495

)

INCOME FROM CONSTRUCTION OPERATIONS

54,815

34,045

53,890

71,062

Other income, net

1,050

40,990

1,830

41,406

Interest expense

(15,998

)

(22,519

)

(31,063

)

(38,083

)

INCOME BEFORE INCOME TAXES

39,867

52,516

24,657

74,385

Provision for income taxes

(11,971

)

(19,883

)

(7,703

)

(27,988

)

NET INCOME

27,896

32,633

16,954

46,397

LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS

3,013

2,537

4,195

2,537

NET INCOME ATTRIBUTABLE TO TUTOR PERINI CORPORATION

$

24,883

$

30,096

$

12,759

$

43,860

BASIC EARNINGS PER COMMON SHARE

$

0.50

$

0.61

$

0.26

$

0.89

DILUTED EARNINGS PER COMMON SHARE

$

0.49

$

0.59

$

0.25

$

0.86

WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING:

BASIC

49,946

49,735

49,880

49,510

DILUTED

50,440

50,755

50,127

50,853

Tutor Perini Corporation

Segment Information

Unaudited

Reportable Segments

Specialty

Consolidated

(in thousands)

Civil

Building

Contractors

Total

Corporate

Total

Three Months Ended June 30, 2018

Total revenue

$

461,614

$

447,975

$

270,633

$

1,180,222

$

—

$

1,180,222

Elimination of intersegment revenue

(59,141

)

(996

)

—

(60,137

)

—

(60,137

)

Revenue from external customers

$

402,473

$

446,979

$

270,633

$

1,120,085

$

—

$

1,120,085

Income from construction operations

$

49,439

$

12,536

$

7,454

$

69,429

$

(14,614

)

(a)

$

54,815

Capital expenditures

$

27,352

$

592

$

215

$

28,159

$

174

$

28,333

Depreciation and amortization(b)

$

6,569

$

489

$

1,106

$

8,164

$

2,813

$

10,977

Three Months Ended June 30, 2017

Total revenue

$

538,552

$

508,769

$

281,857

$

1,329,178

$

—

$

1,329,178

Elimination of intersegment revenue

(65,970

)

(15,934

)

—

(81,904

)

—

(81,904

)

Revenue from external customers

$

472,582

$

492,835

$

281,857

$

1,247,274

$

—

$

1,247,274

Income (loss) from construction operations

$

58,144

$

5,736

$

(14,007

)

$

49,873

$

(15,828

)

(a)

$

34,045

Capital expenditures

$

1,850

$

104

$

286

$

2,240

$

271

$

2,511

Depreciation and amortization(b)

$

5,236

$

513

$

1,193

$

6,942

$

2,820

$

9,762

Reportable Segments

Specialty

Consolidated

(in thousands)

Civil

Building

Contractors

Total

Corporate

Total

Six Months Ended June 30, 2018

Total revenue

$

787,014

$

938,592

$

545,434

$

2,271,040

$

—

$

2,271,040

Elimination of intersegment revenue

(121,427

)

(1,372

)

—

(122,799

)

—

(122,799

)

Revenue from external customers

$

665,587

$

937,220

$

545,434

$

2,148,241

$

—

$

2,148,241

Income from construction operations

$

52,278

$

18,961

$

14,689

$

85,928

$

(32,038

)

(a)

$

53,890

Capital expenditures

$

46,548

$

870

$

634

$

48,052

$

251

$

48,303

Depreciation and amortization(b)

$

12,325

$

970

$

2,218

$

15,513

$

5,651

$

21,164

Six Months Ended June 30, 2017

Total revenue

$

905,363

$

1,019,936

$

597,553

$

2,522,852

$

—

$

2,522,852

Elimination of intersegment revenue

(128,206

)

(30,011

)

—

(158,217

)

—

(158,217

)

Revenue from external customers

$

777,157

$

989,925

$

597,553

$

2,364,635

$

—

$

2,364,635

Income from construction operations

$

90,032

$

10,977

$

755

$

101,764

$

(30,702

)

(a)

$

71,062

Capital expenditures

$

7,417

$

148

$

293

$

7,858

$

325

$

8,183

Depreciation and amortization(b)

$

21,554

$

1,031

$

2,385

$

24,970

$

5,788

$

30,758

(a) Consists primarily of corporate general and administrative
expenses.

(b) Depreciation and amortization is included in income from
construction operations.

Stay Informed

To receive notifications via email, enter your email address and select at least one subscription below. After submitting your information, you will receive an email. You must click the link in the email to activate your subscription. You can sign up for additional subscriptions at any time.